The government has announced its long-awaited plans to reform how rental properties are managed in England.
The Renters’ Rights Bill is Labour’s version of the Renters (Reform) Bill, which did not pass before the end of the Conservative Government. The Bill was given its first reading in Parliament this month, but many more stages need to occur before it becomes law.
Coming up, we look into what the Bill contains and when it’s expected to progress through the House of Commons and House of Lords.
To receive updates about the Renters’ Rights Bill, speak to your local branch.
When will the Renters’ Rights Bill become law?
The Renters’ Rights Bill is currently in its initial stages. Before it can become law, it will need to pass through both the House of Commons and the House of Lords.
Thanks to Labour’s majority and the Bill being a key manifesto promise, it’s likely to progress faster than previous bills. Housing Minister Matthew Pennycook has said that he hopes it will become law by summer next year.
Timeline for the Renters’ Rights Bill
The Bill is currently going through the House of Commons, following the process:
- First reading: Done
- Second reading: Done
- Committee stage: Current stage
- Report stage: TBC
- Third reading: TBC
What does the Renters’ Rights Bill include?
Propose an end to Section 21
Designed to overhaul the private rental sector, making things fairer for tenants while protecting the rights of good landlords, the Bill includes the removal of Section 21 repossessions from the private rented sector. Instead, new grounds for possession will be introduced so landlords can reclaim their properties if they need to.
Since only around 6% of tenants are evicted this way, it shouldn’t have too much of an impact on landlords, who will be given strengthened grounds for possession that are clear and comprehensive.
While this change covers all tenancies, the practicalities are yet to be determined. There’s also uncertainty about court capacity for the likely surge in cases. We’re monitoring the situation closely and will keep this page updated as soon as anything new is known.
Enhance tenants’ rights and protections
Tenants will have more powers to challenge rent increases, allowing them to contest unreasonable rises designed to force them out.
The Bill also proposes to end the practice of rental bidding wars by landlords and letting agents.
Make it simpler for tenants to keep pets, subject to landlord approval
The proposed legislation dictates that landlords must consider and cannot unreasonably refuse a tenant having a pet in their rental property. However, landlords can request insurance to cover any potential damage a pet might create.
Propose a Decent Homes Standard
The Renters’ Rights Bill will introduce the Decent Homes Standard for the private rental sector in a bid to reduce the number of poor quality rental homes being provided for tenants. Under new legislation, all privately rented properties will need to be safe, secure and hazard free.
Introduce Awaab’s Law to the private rental sector
Landlords will be required to investigate and fix reported health hazards within specified time frames under Awaab’s Law.
Originally introduced in the Social Housing Regulation Act 2023, the law is designed to improve living standards in rental homes, ensuring tenants are empowered to challenge any landlords who fail to do this.
Build a digital private rented sector database
A digital private rented sector database will be established, consolidating information for landlords, tenants, and councils.
- Tenants will gain access to essential details to make informed decisions when starting new tenancies.
- Landlords will easily understand their legal responsibilities and how to demonstrate compliance.
- Councils will be able to efficiently target enforcement efforts, improving overall housing standards by focusing on areas with the most non-compliance.
Propose a new property ombudsman
A resolution for disputes is proposed through the introduction of a new ombudsman. Designed to circumvent expensive court proceedings, this has been introduced to provide “a fair, binding and impartial resolution, to both landlords and tenants”.
Although it would be mandatory for all landlords to join the ombudsman, landlords using a letting agent to manage their properties already benefit from those agents being part of mandatory redress schemes.
Introduce anti-discrimination measures
The legislation will make it illegal for landlords to discriminate against tenants who receive benefits or have children.
Enhance local council enforcement powers
Local councils’ enforcement powers will be strengthened, making it easier for councils to identify and penalise bad landlords and drive them out of the sector.
How can Parkers help?
If you’ve any questions about the Renters’ Rights Bill and how it will affect your let, our team is on hand. Get in touch today to find out how we can help you.
